Korea Lines is to spin off its LNG transportation business into a separate company, according to reports from South Korea.
The 11 LNGCs — all chartered to South Korean state-owned Kogas — will now operate under Daehan Shipping LNG, using an English name of Korea Line LNG.
Korea Lines' 23 bulk carriers, three tankers and one ferry will remain under the original entity.
Four of the LNGCs are owned by a consortium.
Local media said that Korea Lines will split the company on 1st May — pending approval by its shareholders — to try to make its LNGC and bulk transport businesses more efficient..
This will allow the new companies to react to developments in their respective markets independently, Korea Lines reportedly said, adding that it does not intend to re-list the new LNG entity on South Korea’s securities exchange, or seek new equity holders for it.